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Study Shows Commercial Rents on 17th Ave in Calgary Stayed at Pre-Pandemic Levels or Increased: Interviews

Image: 17th Ave Retail & Entertainment BIA

A recent survey on retail rents by a Calgary commercial real estate firm has found some very interesting results of what’s been happening throughout the COVID-19 pandemic.

According to Fairfield Commercial Real Estate, rents for transactions completed during the dog days of the pandemic along retail high street 17th Avenue S.W. have stayed at pre-pandemic levels.

And the company’s survey indicates some street front retail and food service rents have even increased over the last year in prime locations.

As Alberta’s economy has fully opened up, there is demand for real estate space for businesses. While many retailers and food service establishments have unfortunately pulled the plug due to the vicious economic challenges presented by COVID, there have been many new tenants out on the market looking for space in popular urban retail districts across the city.

Monika Blachut

Monika Blachut, Associate with Fairfield Commercial Real Estate, says at the start of COVID there was quite an influx of vacancy versus a hesitancy from entrepreneurs to make moves in spaces.

“We saw during the beginning of COVID when there was a higher vacancy rate there was a little bit of improvement in that first year, second year where tenants were able to negotiate a little bit of a lower rate,” said Blachut.

“However, what we’re seeing now is that deals done I would say anywhere from Christmas on in the new  year of 2021 have been hitting consistently pre-COVID numbers and I would even say there are some developers who have chosen to maybe make smaller footprints because they need to reach their certain rent targets to get financing. And landlocked construction costs none of that has decreased so they’re actually reaching and achieving above market pre-COVID rates for smaller spaces.”

Blachut said this is happening specifically in inner city urban districts.

Image: 17th Ave SW

“I think the days are gone of your three, four or five thousand square foot footprint that can pay the rates that landlords need to make projects and numbers work so we’re seeing a migration to smaller footprints to achieve the higher rates,” she said.

“It’s supply and demand. The suburban market in Calgary is booming. So landlords in Calgary are achieving what they’re asking for and obviously with inflation and projections over the course of say five, 10 years there are step ups in rates and we’re just going to see ever-increasing rates over time.

“What we were curious about was in the inner city. I can assure you that the downtown core is an anomaly in the Calgary market. In the downtown core, we have heard of some very, very aggressive and interesting deals put together just because there’s so much vacancy in the office market that retailers don’t have the business to support high, high rates. But the moment you leave that downtown core, the market is there and landlords are able to achieve them.”

She said entrepreneurs are now weighing out the pros and the cons of those rates. They’re able to look at a monthly gross rate that works for their business model.

“The question that we have posed is are these rates sustainable? And really what’s going to happen in the fall when these government assistance programs are over? That’s the real question. The rates we’ve seen even when we did our market analysis on rents along 17th Avenue it was very high numbers, but is it sustainable? That is the balancing act in our industry and obviously a landlord’s hope is to get as much money and for as little space as possible and entrepreneurs are paying it for prime locations,” said Blachut.

Image: Candy Shop Cafe via 17th Ave SW

“It will be interesting to see a year from now. If current demand sustains, then possibly yes it’s sustainable. I wish I had a crystal ball. I don’t. Maybe there’s a lot of entrepreneurs and businesses that have hung on and have maintained. Any new businesses that have opened up obviously don’t qualify for any of these government programs. That’s the interesting thing. It’s the new businesses, new deals that are being put on paper that are paying these rates. I just think from a business plan model these rates work for them.

“In Kensington for instance there was a monopoly of a few landlords who owned a lot of buildings and they were getting very very high rates and we saw a time even two years ago when there started to be a lot more vacancies because it wasn’t sustainable. Businesses weren’t able to pay rent, pay increasing staffing costs. Everything is going up. Do I think there will be another falling out? I think that’s something that will happen. But no one has a crystal ball.”

The attraction to those urban districts is the density of people living, working and visiting those areas which is driving up the rental rates.

“The consumer is there. You’re just servicing an already existing and growing population with new developments as they go up,” added Blachut.

Podcast [Interview]: Terry Cassaday, Founder and CEO of ergoCentric

Craig speaks with Terry Cassaday, founder and CEO of ergonomic chair company ergoCentric which is expanding further into retail with new storefronts.

The Interview Series podcast by Retail Insider Canada is available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players. Also check out our The Weekly podcast where Craig and Lee discuss popular content published on Retail Insider which is part of the The Retail Insider Podcast Network.

**Podcast Sponsor: Swyft is a rapidly growing Canadian same-day shipping company that has partnered exclusively with Retail Insider. Learn more about Swyft’s scalable, affordable best-in-class last mile solution.

Interviewed this episode:

  • Terry Cassaday, founder and chairman of ergoCentric
  • ergoCentric

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Background Music Credit: Hard Boiled Kevin MacLeod (incompetech.com). Licensed under Creative Commons: By Attribution 3.0 License. http://creativecommons.org/licenses/by/3.0/

Paris Baguette to Enter Canada and Open 1st Location on Toronto’s Bloor Street Luxury Run

Photo: Paris Baguette

International bakery-cafe chain Paris Baguette will open its first Canadian location on the luxury stretch of Bloor Street West in Toronto. The retailer is operating under a franchise model and is also targeting the Vancouver and Montreal markets as part of a national expansion. 

The first Toronto storefront for Paris Baguette will be located in a retail space formerly occupied by Browns Shoes at 110 Bloor Street West. The space measures about 2,500 square feet at street level according to lease plans. Neighbours will include some of the world’s top luxury brands including names such as Gucci, Prada, Cartier, Louis Vuitton, Tiffany & Co. and others. 

Geoff Smith of CBRE represented Paris Baguette in the lease deal. Arlin Markowitz of CBRE co-listed the space at 110 Bloor with Philip Traikos and Carmen Siegel of Cushman and Wakefield

Paris Baguette is a global brand owned by South Korean food-and-beverage company SPC Group that operates more than 80 corporate and franchise bakery-cafés throughout the United States and over 6,000 internationally. The premium bakery-cafe concept focuses on handcrafted breads, pastries and cakes, as well as chef-inspired sandwiches and salads. Included are various grab-and-go menu items that will offer a food experience on a stretch of Bloor Street lined primarily with luxury brand storefronts. 

Rendering showing Paris Baguette’s new space at 110 Bloor St. W. Image via ProWinko Canada/CBRE
Paris Baguette will occupy the former Browns Shoes space at 110 Bloor St. W. — photo by Craig Patterson on August 1, 2021
Photo: Paris Baguette

In October 2020, Paris Baguette announced its presence in Canada via a registered Franchise Disclosure Document. At the time the company said that it was charting the course on a Canadian expansion in Toronto, Montreal, Vancouver and other “booming” provinces and cities. Paris Baguette said in a statement that its goal is to establish at least 100 bakery branches in Canada by 2030.

“We look forward to building our footprint in Canada through franchising,” said Gregg Koffler, Vice President of Franchise Sales and Development in a statement last year. “Consumers are continuing to chose quick service restaurants and, as such, we see a great deal of opportunity for business owners looking for a tried and true business model, that offers gourmet menu selections for dine-in, delivery or takeout.” 

“We offer multi-faceted store footprints and our concept succeeds in a variety of environments, from city centers to suburban shopping complexes. Pairing that with our global identity and real estate team, we are confident that Paris Baguette is positioned to resonate with an array of communities in Canada.”

Big changes are coming to 110 Bloor Street West. We reported last month that upscale Paris-based women’s fashion brand Anne Fontaine would also be opening in the commercial podium which is seeing a roster of new tenants that will coincide with the updating of the property that includes a new retail facade. ProWinko owns the commercial podium of 110 Bloor. 

Moose Knuckles Opening Store at CF Toronto Eaton Centre

CF Toronto Eaton Centre (August 1, 2021). Photo: Dustin Fuhs

Popular Montreal-based fashion and outerwear brand Moose Knuckles will open a 4,500 square foot storefront at CF Toronto Eaton Centre this fall. Construction hoarding went up over the weekend in a retail space formerly occupied by LOFT on the third level of the mall — a Reiss fashion store is located on one side and jeweller European Boutique is on the other. 

Moose Knuckles is growing its base of direct-to-consumer storefronts rapidly in Canada — in 2017 the brand opened its first store at Yorkdale Shopping Centre in Toronto and locations have since opened including permanent stores in Vancouver and Calgary, pop-ups in Edmonton and Winnipeg, as well as outlet stores in the Montreal and Niagara Falls areas. 

CF Toronto Eaton Centre is also home to outerwear competitors Canada Goose, Mackage, and Rudsak. Stores carrying Moose Knuckles in the shopping centre include Nordstrom, Saks Fifth Avenue and Harry Rosen. CEO Noah Stern recently told Retail Insider in a podcast that the company would be growing its direct sales channels including its own standalone stores and concessions. 

Moose Knuckles Construction at CF Toronto Eaton Centre
Moose Knuckles Construction at CF Toronto Eaton Centre (August 1, 2021). Photo: Dustin Fuhs

Canadian Retail News From Around The Web For July 30th, 2021

Canadian Retail News From Around The Web

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Central/Eastern Canada News

Western Canada News

Pandemic Hits Airport Retail Hard in Canada: Interviews

The past year or so has been devastating for the retail sector across Canada as the industry has coped with the uncertainty of the lingering COVID-19 crisis and the resulting plunge in sales.

And a key area which was particularly hard hit was the sector’s presence in airports throughout the country.

The plunge in travel due to restrictions and public health concerns was dramatically felt by retailers, food and beverage operators and of course duty free shops.

Tim Barnes

But recently there has been a seed of hope planted for the future as restrictions have eased, travel is increasing and news of the Canadian border opening up has fueled some optimism about the future.

Tim Barnes, Senior Director of Commercial Services at the Calgary International Airport, said there is a very quick resurgence in activity.

“What we thought would take a lot longer we’re now seeing our food and beverage numbers jump drastically in July based on the increase in traffic but also the leisure traveller is what’s driving it and that leisure traveller does tend to stop for a burger because they’re in the leisure mode,” said Barnes.

Image: YYC Calgary

The airport in Calgary has about 120 to 130 different businesses operating out of the terminal.

“We’ve been absolutely lucky but also very supportive of our partners and as a result we’ve had virtually no bad debt come through from the process which is incredible when you think about it,” said Barnes. “We thought for sure there would be a number of operators that would be in trouble and go insolvent.

“Now there have been some who have left the airport and they’ve left on good terms and we supported them through that process. We used all the government programs at our fingertips for supporting them and we supported them ourselves as well with rent relief and rent extensions for payment. So we’re really proud of the fact that we actually have no really bad severing with relationships where we’re left holding the bag. I think it’s in part because we were very supportive through the process and provided those extensions and worked with our partners and also because we’ve got great partners. They’re stand up great business people that have integrity.”

Barnes said the opening up of the Canadian border to the US is huge. The transborder business historically has been around 20 per cent of its volume.

“It doesn’t sound like a lot but when you actually look at the numbers from a retail perspective they punch well above their weight. As you can imagine, people going to Palm Springs or Las Vegas they tend to have breakfast, they tend to have maybe a couple of drinks on their way and they do spend more. It does make a difference. The domestic traveller spends less,” he said.

No Boundaries at YYC (Image YYC Calgary Facebook)

Barnes said the airport a few years ago started asking passengers what they wanted in the way of amenities. It wanted to make sure that any changes it made in retail were driven by the passengers.

“So every new concept that we developed from that point forward has been based on passenger research. It gave us a good process to follow,” said Barnes. “It seems simple but we weren’t doing that before. And that process has really helped us,” said Barnes.

“We haven’t necessarily increased the amount of retail in our redevelopment plan. What we’ve actually done is stripped away a lot of the clutter. If I were to use a phrase, it would fewer, bigger, better in terms of what we’re trying to do with retail so that when passengers do come through and they experience destination type locations that serve multiple needs versus having all these smaller operators that makes it much harder for them to survive.

“We used to have these carts in the middle of the concourses and they were great for sales but from a passenger experience standpoint they were terrible because oftentimes you’d get a wide body in and they’d be walking the lineup and they would actually have to line around these carts which was great for revenue because people be standing next to this cart and buy something. But from a passenger experience standpoint it was not where we wanted to be.”

Image: Canadian Brewhouse at Edmonton International Airport

The retail component has been an important revenue stream in recent years for airports across the country with a trend to providing services that passengers are looking for in their travel experience.

Myron Keehn

Myron Keehn, Vice President of Air Service and Business Development at the Edmonton International Airport, said pre-COVID there were more than 60 businesses in retail food and beverage at the airport. Currently just over half have returned to operations.

Just recently a unique new concept with Canadian Brewhouse was introduced at the airport with two restaurants – it’s the first airport location in Canada for that brand. The kitchen is located on the air side and a technology has been built which allows the food to move between post-security and pre-security areas. The restaurant is divided in two.

In the past year or so, many food and beverage locations were closed but the airport always maintained some food and beverage and retail options for passengers and the public as well as employees.

Canadian Brewhouse
Canadian Brewhouse (Image: Edmonton International Airport)

“We did keep open a handful of restaurants and a handful of retail so people could be served but at the peak of the pandemic we were doing hundreds of passengers a day instead of doing five to ten thousand a day,” said Keehn. “Those restaurants and retail stores couldn’t stay open. There’s no passengers. There’s no revenue.”

Some businesses permanently closed but Keehn said those spaces are being reimagined and reinvented and reopened as new brands over the coming months and into 2022.

“The airports are basically like a barometer for the economy . . . It has a direct impact on the economy. It’s a great bellwether of the economy,” said Keehn.

“Our duty free will reopen. We can start having international flights after August 9 as the federal government has announced and we’re very pleased with that and as the government works to reopen Canada’s airports to international travel duty free stores can open as well.

“Today in Edmonton we’re seeing about between 50 and 60 per cent of 2019 as far as passengers. We’re doing quite well in Canada. Alberta’s doing very well compared to other jurisdictions that are still in different stages of reopening based on their local vaccination rates and case loads. That has a direct impact on the ability to reopen . .  It helps to reopen the economy.”

Podcast [Interview]: Michele Bailey Discusses Gratitude and its Positive Impact on Businesses

Craig and Michelle Bailey, Founder & CEO at The Blazing Group, discuss her new book “The Currency of Gratitude” and lessons that retailers can use in organizational training and overall operations.

The Interview Series podcast by Retail Insider Canada is available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players. Also check out our The Weekly podcast where Craig and Lee discuss popular content published on Retail Insider which is part of the The Retail Insider Podcast Network.

**Podcast Sponsor: Swyft is a rapidly growing Canadian same-day shipping company that has partnered exclusively with Retail Insider. Learn more about Swyft’s scalable, affordable best-in-class last mile solution.

Interviewed this episode:

Subscribe, Rate, and Review our Retail Insider Podcast!

Follow Craig:

Follow Retail Insider:

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Share your thoughts!

Drop us a line at Craig@Retail-Insider.com. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!

Background Music Credit: Hard Boiled Kevin MacLeod (incompetech.com). Licensed under Creative Commons: By Attribution 3.0 License. http://creativecommons.org/licenses/by/3.0/

Joel Carman Leading Iconic Denim Retailer Over the Rainbow Toward a Half Century of Success: Interview

Joel Carman, Founder of Over the Rainbow - Photo by Dustin Fuhs

For nearly a half century – 46 years to be exact – one iconic Toronto retailer has consistently served its customers, building and supporting a community around its operation to serve as an intrinsic piece of the Bloor-Yorkville neighbourhood ensemble. It’s a retailer that has adeptly evolved and transitioned with shifts and changes brought about by technological advancements, market trends, consumer preferences and just about everything in between. And it’s managed to do so while remaining true to its roots and core values, never wavering from its objective to provide a vibrant and fun experience for its visitors. However, this description provides only a meagre glimpse into the collective reasons that help explain the success of Over the Rainbow and what it means to its scores of loyal customers. In order to really begin understanding what makes this independent boutique so special, you’ve got to meet its Founder and leader, Joel Carman.

Leading by example

Joel Carman, Founder of Over the Rainbow – Photo by Dustin Fuhs

When asked about his profession, the 72-year-old retail veteran speaks with verve, glowing about his store’s adoring patrons, raving over its brand partnerships, and beaming with pride concerning the role that it’s managed to serve within the city for the better part of five decades. Growing through the years to be considered by many as Toronto’s number one destination to find premium denim – becoming famous among locals on account of the store’s ‘denim wall’ which has continuously boasted an array of brands, styles, fits and shades – Over the Rainbow also offers a wide selection of tops, outerwear, and accessories. Carman reflects with satisfaction concerning the store’s growth and evolution since opening its first location in 1975, riffing on the intricacies of the operation with an acute understanding of the business he built and the market that’s second to none. And when discussing the ways in which he’s led the store to such an iconic status, he’s incredibly humble, directing much of the credit toward the team around him. However, he also shares what he recognizes as the qualities a leader must possess in order to organize, inspire and run a store on a day-to-day basis.

“I’ve always believed that you lead by example and hard work,” he says. “If you do that, your staff and the people around you will follow and emulate your work ethic and the high standards that you set. A leader must also be able to communicate effectively with their staff to understand challenges and overcome them quickly. By doing so, you’re better able to understand what an individual is capable of achieving and can then better support them to maximize their growth and achievements. Underpinning all of this is a clear vision and the ability to properly convey that vision amongst your team, motivating and encouraging them to help make it a reality. And, to make sure that everyone is on the same page and heading in the right direction, you’ve got to be transparent with everyone involved. If you can execute on these things, there is very little holding you and your team back from achieving your objectives. And most importantly, you’ll enjoy doing what you do, allowing you to deliver a fun and vibrant experience for your customers in a warm and friendly environment.”

Nurturing a positive culture

Over the Rainbow at Manulife Centre – Photo by Dustin Fuhs

He goes on to explain that there is obviously a long list of other qualities that a great leader might possess, categorizing them in groupings of “high level” and “grassroots”, suggesting that a balance of both can help in providing a more holistic understanding of the business, the roles of the people within it and the ways to bring out the best performance in everyone. He says that leading in this way also lends significantly to the cultivation and nurturing of a healthy and positive culture within an organization, translating often into superior customer service and relations. For Over the Rainbow, Carman explains, tending to the needs of the customer has always been its top priority.

“I’m really proud of the culture that we’ve created,” he says. “A big part of a leader’s responsibility is to help set the tone for the business and to ensure that everyone buys into the culture and is committed to maintaining it. If the culture is grown properly and organically, it allows you to really focus on the needs of the customer and provide them with the service that they’re looking for. I’ve always conducted the business as a one-store operator and really love my contact with customers. In many ways, I grew up with the business. Long ago it became a part of my life. Over the years a lot of my customers have become my close friends. Our culture has allowed us to build a community around the store. That’s the most rewarding aspect of my career to this point.”

Reputation and legacy

JOEL CARMAN IN FRONT OF THE FORMER YORKVILLE AVENUE STORE IN 1982. PHOTO: OVER THE RAINBOW

Carman travelled Europe for a couple of years back in his early twenties after completing university and worked as a cab driver when he arrived home. He did so, he says, in order to “earn a living and pay the rent”. This might seem like an insignificant piece of the Over the Rainbow story if it weren’t for the fact that it was while driving his cab when he met Peter Jackman, an alterationist, with whom he would become friends and business partners. Together they ran a store that did alterations before it began selling ladieswear with fashion denim as the central product. After a year of business and substantial growth, Jackman left the operation, leaving Carman and his wife, Jinni, as the sole owners of Over the Rainbow. Soon after, the couple moved the store to a new and upsized 1,450 square foot location at 120 Cumberland Street in Yorkville, growing the store’s staff as well. And in 1982, it moved once again to an even bigger 2,800 square foot space at 101 Yorkville Avenue. It would expand that space a couple times before the turn of the millennium, becoming an integral stitch in the fabric of the Bloor-Yorkville neighbourhood and Toronto as a whole.

Throughout the past four-and-a-half decades and some, however, Over the Rainbow hasn’t simply grown the size of its store. During this time, it’s also managed to grow in reputation and prestige among the industry and its community of customers. And, it’s also marked a number of significant milestones along the way as well. In 1982, it secured Wayne Gretzky as the brand’s very first celebrity endorser. Two years later, it began importing Japanese denim, introducing Edwin Jeans and Big John to Canada for the first time. In 1985, the store launched the first Tommy Hilfiger collection in Canada and in 1994 launched Chip & Pepper. It was also part of a select group of retailers that launched the very first Canada Goose city collection in 2005. It rode the crest of trends like the resurgence of wide bottom denim in the mid-nineties, the velour and terry cloth tracksuit craze of the late nineties as well as the initial frenzy around UGGs.

In addition, it’s also experienced a digital transformation that’s been taking place over the course of the past couple decades, getting in front of it with the development and introduction of its RainbowJeans.com website in 2001, which received a boost in 2015, relaunching with full ecommerce capabilities to help celebrate the store’s 40-year anniversary. Considering Over the Rainbow’s extensive and celebrated history, it’s easy to see why it’s so loved by those familiar with Carman and the experience he offers. The longevity of the store is one of the things that the retail leader says he’s most proud of, having to navigate through seismic changes that have occurred throughout the industry during the time that he’s been involved.

“When I first started, I was riding a horse, and now I’m flying a jet plane,” he jokes. “The digital evolution that’s taken place over the course of the past 20 years or so has been remarkable. It’s really sped up the transfer of information and made communication that much quicker and more effective. It’s also elevated the level and sophistication of the resources that are available today. Information is the key to running a business. And, leveraging the latest technologies and tools has helped us grow and solidify Over the Rainbow. It’s clearly the biggest difference between running the store today as opposed to 46 years ago. Having access to all of the most important information in near real-time allows you to better understand all of the different aspects of the business, ensuring a smoother and more effective operation. It also helps you get closer to your customer, developing a clearer understanding of what they want and the assortment they’re looking for. Understanding more about my business has allowed me to enjoy running it so much more, too.”

Influence and inspiration

Over the Rainbow at Manulife Centre – Photo by Dustin Fuhs

Although it’s clear that the majority of Over the Rainbow’s success has come as the result of Carman’s savvy, ingenuity and business intellect, he’s quick to offer praise to some of his contemporaries and to those who preceded him in the industry who influenced and inspired him. He mentions leaders like Harry Rosen, Thrifty’s Irving Lerman, AG Jeans’ Adriano Goldschmied, Citizen of Humanity’s Jerome Dahan, Diesel’s Renzo Rosso and Replay Group’s Claudio Buziol, among others, as those who have been particularly influential, admitting that keeping a close eye on each of them and the ways they’ve done things has enabled him to continue improving and developing his skills as a leader.

“The clothing business is rich with individuals who have been incredible role models and people to really learn from,” he asserts. “There have been so many people within the industry who have grown phenomenal businesses through incredible character and innovation. Their contributions have been amazing. Everyone learns from one another. And everyone seems to also feed off of the passion of the other. To become involved in clothing retail, you’ve got to be committed and love what you’re doing. And, it sounds crazy, but you’ve got to approach the business with passion, without thinking of financial gain. Wealth and financial success may come later on as a by-product of your work. But there are other successes that you’re rewarded with in terms of community and the incredible relationships that you’re able to develop through the work that you do.”

Building community

Over the Rainbow at Manulife Centre – Photo by Dustin Fuhs

Many of the relationships that Carman refers to have been developed through Over the Rainbow’s active participation in community events and causes over the years. In 1997, Carman organized the first Harley Davidson Motorcycle Charity Poker Run providing toys, photos and fundraising to the patients at Hugh MacMillan Rehabilitation Centre in Toronto; in 2010, he celebrated 35 years of business with an outdoor barbeque and shopping event in support of Autism Speaks Canada; and in 2011, he raised $41,000 for Movember and Prostate Cancer Canada by shaving off his signature mustache. These are but a few examples of the involvement that Carman has ensured for Over the Rainbow through the years, further embedding the store as a mainstay of the Toronto cityscape.

“Throughout our history, we’ve been involved with so many incredible charities and organizations that make such an important difference in the lives of so many people,” he says proudly. “It’s really important to me that we give back to the community that’s supported us all of these years and to try to make ourselves as essential to our surroundings as possible. And, in the end, it’s about doing the right thing, developing and staying true to give-and-take relationships that have the capacity to help everyone involved.”

Pivoting amid challenge

Over the Rainbow at Manulife Centre – Photo by Dustin Fuhs

Despite the success that Over the Rainbow has enjoyed through the years and the strong connection that it’s developed with its customers, partners and community at large, there was little that could have prepared it for impacts brought about by the COVID-19 global pandemic. Carman explains that the effect that the lockdowns had on the business was immediate and severe enough to stagger any retailer. However, through the digital agility that it had recently equipped itself with through the development of Over the Rainbow’s ecommerce site, Carman and the store were able to pivot quickly and continue operating even though he wasn’t able to welcome any customers into his physical environment.

“We were driving a car at 100 kilometres an hour and then the brakes were slammed,” he says. “The store closed on March 17 of last year without very much notice. We had just received all of our spring merchandise for that particular season and were loaded with inventory. And then, all of a sudden, our doors were closed. Thank goodness my children recognized the need to develop an ecommerce business. It had been working at a low level. But when the lockdown happened, we immediately put all of our resources into our ecommerce business and continued to develop the site. We had to monetize our inventory as quickly as possible, which we did. It was an extremely important pivot for us to make and allowed us to maintain our operation.”

Carman laments the fact that he was forced to lay off some of the store’s staff in order to survive the brutal jolt caused by the pandemic, referring to it as the “most difficult” thing that he’s ever had to do in his 45 years of business up to that point. However, even though these challenges have persisted throughout the past 16 months or so, he’s optimistic about the future of the store and is encouraged to finally be able to open up to visitors again and to begin recalling the team that he’s built.

“I’m really excited,” he exclaims. “I’m optimistic about what’s going to happen going forward because I believe that we have a fabulous business and a great culture. I’m really happy to be back in the store and to have my amazing staff with me so we can present ourselves to our customers again. There will be some logistical problems ahead. But we’re really prepared and really well-seasoned at reaching out to our vendors and customers to ensure an amazing experience for everyone. In the end, I want everyone to be safe and healthy; we’re ready to welcome people back to Over the Rainbow.”

More challenges ahead?

Looking ahead to a post-pandemic world, however, considering the continuum that is fashion, Carman believes that there will be further challenges. He recognizes the regular development of impositions in the clothing retail landscape as part of doing business within the industry. Having said that, however, he is wary of supply chain issues going forward and the struggles that small businesses may face in their attempts to rebuild in the aftermath of COVID.

“Costings within the supply chain are going to pose big problems for everyone,” he says. “The world is becoming a very complicated place. Access to inventory and proper pricing is going to be extremely important, allowing us to give the customer what they want at the right price. However, I anticipate it being difficult for retailers to achieve this until things settle down a little bit. Small businesses have been decimated by the pandemic in general. Things like rent and product are becoming very expensive and the ability to finance through banks is becoming increasingly more challenging. These factors will make it tough for some small businesses without the experience or resources to survive and rebuild. But Canadian entrepreneurs are a bit of a different breed, often possessing a tremendous amount of resiliency and creativity to help them get through difficult times.”

Continued growth and improvement

Joel Carman, Founder of Over the Rainbow – Photo by Dustin Fuhs

With respect to resiliency and creativity, Carman and Over the Rainbow have each quality, and others, in plentiful supply. Now located in a state-of-the-art store in Yorkville’s Manulife Centre and open for business, the retail leader is in his element and confident in taking full advantage of a return of footfall to the store. And, with respect to the months and years ahead for the iconic Toronto retailer, Carman suggests that there is still room for Over the Rainbow to continue growing and improving on its experience and offering.

“I’m a single-store operator who just moved to a 6,500 square foot store. Right now, I’m looking to consolidate my business, provide the best possible product for my customer, to continue evolving within the fashion industry, and to have fun. I want to get back to the atmosphere that’s created within our store on a Saturday afternoon and to enhance it to ensure that people really enjoy the process of doing business with us. If we can do that, everything else will fall into place. I’ve always felt fortunate to be involved in such a dynamic business with so many great people. This business is a big part of who I am. The relationships that I’ve built with the entire community through the years have been invaluable to me, enhancing my life. So, I’m just excited to be back in the store and doing what I love.”

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Canadian Retail News From Around The Web For July 29th, 2021

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GEOX, Champs Sports and A|X Armani Exchange Seeing Renovations at Metropolis at Metrotown in Burnaby

Construction signage for Champs Sports on the upper level of Metropolis at Metrotown (July 2021). Photo: Lee Rivett.

Several retailers at Metropolis at Metrotown in Burnaby, BC are under renovation, including GEOX, Champs Sports and A|X Armani Exchange.

3Italian GEOX Closes for Renovations

Construction signage for GEOX at Metropolis at Metrotown (July 2021)
Construction signage for GEOX at Metropolis at Metrotown (July 2021). Photo: Lee Rivett.

Moderately-priced ‘breathable’ Italian footwear brand  is giving its Metropolis at Metrotown store a makeover. As of July 2021, there is no other GEOX location operating out of the shopping centre so it has not been relocated temporarily to accommodate the renovation.

Photos on Google Maps as recent as June 2021 noted the store being open.

Founded in Montebelluna, Italy in 1995, GEOX is known for its breathable footwear. It has stores around the world. In Canada, it wholesales at retailers nationwide and also operates free-standing boutiques in Vancouver, Edmonton, Calgary, Winnipeg, Toronto, London, Ottawa, Montreal and Quebec City. 

2American Champs Sports Relocates for Renovations

Construction signage for Champs Sports on the upper level of Metropolis at Metrotown (July 2021). Photo: Lee Rivett.

The American sports retailer, a subsidiary of Foot Locker, has relocated to expand on the upper level of Metropolis at Metrotown.

As early as June 2018, Champs Sports had occupied the left half of the construction site while Indochino was ‘coming soon’. At this point, Champs Sports appears to be taking over both retail stores as part of the renovation.

Champs Sports in June 2018 occupying left half of space currently under construction in 2021. Photo: Google Streetview.

The Champs Sports is currently operating on the lower level near the Hudson’s Bay as well as a second location on the upper level across from the GEOX construction site.

Champs Sport on ground/lower level at Metropolis at Metrotown (July 2021)
Champs Sports on ground/lower level at Metropolis at Metrotown (July 2021). Photo: Lee Rivett.

1Armani Exchange Relocates for Renovations

Armani Exchange under construction on the upper level (July 2021). Photo: Lee Rivett.

Giorgio Armani’s sub-brand Armani Exchange (also known as A|X) has relocated to expand on the upper level of Metropolis at Metrotown.

The store is currently operating out of the lower level near the large Indigo location.

Armani Exchange on lower level at Metropolis at Metrotown (July 2021)
Armani Exchange on lower level at Metropolis at Metrotown (July 2021). Photo: Lee Rivett.

Armani Exchange is aimed more towards street style lovers, teenagers and the mass market. It is also the most accessible and affordable of the Armani brands.

Why So Many Renovations?

In addition to these retailers, Zara also just completed a renovation opening a larger flagship this month. Retail Insider noted an update from Metropolis at Metrotown Facebook account where similar renovations were underway exactly 10 years ago.

2011 renovation update from Metropolis at Metrotown.
2011 renovation update from Metropolis at Metrotown.

Let us know why you think the same retailers are renovating 10 years later in the comments below!

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